Sun, Dec 21, 2014, 1:21 AM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

AT&T, Inc. Message Board

  • convergent_series convergent_series Jan 28, 2013 4:12 AM Flag

    S&P Reports, 1/26/2013 (T and VZ)

    S&P uses inconsistent methodology in forecasting share prices for T and VZ and for the next 12 months. In case of T, S&P uses Enterprise Value/EBITDA multiplier while in case of VZ, they use a p/e multiplier of 16 based on estimated forward earnings. Talk about fudged numbers and poor methodology is issuing a set of reports. I care less which method they use, but at a minimum, they should make the set consistent so that what they publish carries some credibility.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • One can only wish that the stock market were that simple. Share prices move for many different reasons and, when forecasting, you have to use the reason that fits the company.

      • 1 Reply to wilkes71
      • Here is my points:
        1) S&P says, 4.6% yield makes the VZ stock attractive and goes on to further say this is based on the current 10 yield bond yield. Now then, why not bring the T's stock yield of over 5 percent to the forefront?

        2) VZ has some huge problems ahead of it whether we go by periodic payments to VOD or outright buyout of their share. S&P conveniently ignores mentioning this important factor. Working the EBITDA for VZ could take a lifetime with no confidence in the resulting conclusion.

        3) VZ is expected to grow earnings by 8 percent compared to 7 for T.

        4) Same credit rating but VZ stands on a shaky ground mainly because when they have to cuff up $22.5B to buy VOD's share of assets held and used by the company.

        In summary, we should ignore the claims made in the reports in totality with respect to VZ. By far, T makes a much better buy.

 
T
33.54+0.03(+0.09%)Dec 19 4:02 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Under Armour, Inc.
NYSEFri, Dec 19, 2014 4:04 PM EST
ImmunoGen, Inc.
NASDAQFri, Dec 19, 2014 4:00 PM EST
3M Company
NYSEFri, Dec 19, 2014 4:04 PM EST